Australia Food Water Energy NexusAustralia a long term sustainable & reliablestrategically aligned food securityvalue chain partner

• Global export food demand dynamics

• Sustainability of production resource (arable land & water utilisation)

• Food security - future supply demand and affordability pressures

• Australia a long term & reliable strategically aligned food security value chain partner

Contents

• Population increasing 30% by 2050 world will need to produce 70% more food• Increasing numbers of affluent consumers – 30% increase in average daily calorie intake

• Major population increases coming from regions where cereals are not readily produced impacting basic food product sustainability and price security, driving substantial increase in global cereal export demand

Global export food demand dynamics

Australia’s food export projections

Sustainability of production resource (arable land & water utilisation)

• One arable Hectare will need to feed 30% more people by 2050

• Cereal exporting nations are improving their water use efficiency / capacity to convert water into grain at a faster rate than is occurring in cereal grain importing countries.

Food security - future supply demand and affordability dynamics

• Increasing demand, (global cereal stocks-to-use ratio = 24% where to?)

• Reduced rate of productivity gains• Declining yields, (climate, conflict, non food use)• Rising costs of production• Government policies, (food security policies i.e. export

embargos)• Global supply / value chain dynamics adjusting rapidly i.e.

vertical integration models emerging – will export grain be traded in 2050?

• Arable land values rising globally• Trend towards increasing density of population urbanisation

Australia a long term sustainable& reliable strategically aligned food securityvalue chain partner• Food exports – significant global food exporter in 2050

• Research - significant investor in primary production R&D, Au$1.5 Billion annually

• Food safety / quality / biosecurity – commitment, standards and quality very high

• Sustainable production practices – high water use efficiency and min tillage technologies

• Foreign investment and strategic supply / value chain integration sort and welcomed

Thank youRichard Price, Managing DirectorAustralian Export Grains Innovation Centre Ltd

Richard.price@aegic.org.auwww.aegic.org.au